The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1887-07-16
ISSUED BY
The American Water Works Co.

The undersigned offer for sale and recommend
for Investment, af I03 and interest, subject
to advance without notice, the above des-
eribed 81 GOO, 600 bonds Of the American Water
Works Company, secured by mortgage upon the
franchise and property of the Water Works at
Omaha, Nebraska.
These bonds are part Of an authorized loan Of
s4,00o,oOo, Of which $4,000 are placed In trust
with The Farmers Loan and Trust Company, New
York, for the purpose Of retiring an equal amount
OF old bonds now outstanding as soon as they can
be redeemed, and the remaining 100000 are
deposited In trust with the sameCOmpany 10 be is
sued after January LIST, 1888, as may be requlr
ed 10 defray the actual cash cost of extensions Of
water mains and other additions 10 the plant
For the present, however, the entire indebtedness
Of the Company will be only $4,000. 600 upon
which the annual interest charge will amount TO
100000.
The gross income Of the Company for the en-
suing year on the basis Of present applications
and contracts win exceed 100000, and II the
average rate Of increase for the past three years
Is continued the basis Of earnings on July LIST
1888, win not be less than s25O,ooo per annum'
but there is every indication that the percentage
Of Increase this year will be larger than ever be-
fore, the Company having added 6o4 new con
sumers during the six months ending July 1st,
1887, as compared with 556 for the year 1886.
The operating expenses for the ensuing year
will approximate s45, 600 and after paying inter
est and all other charges there will be a surplus
Of more Than $4,000. exclusive OF any increase
in earnings beyond existing contracts.
By express provision of the mortgage no part Of
the 1000, 900 bonds in trust can be issued un-
less the net income Is more than sufficient TO pay
the interest thereon in addition to bonds previ-
ously issued and then only to pay actual cost Of
extension, not exceeding 100000 in any one
MONTH
The present population Of Omaha is not less
than 100, 900, an increase of 10000 since 1880
when the works were constructed, and this re-
markable growth has not only required the Com
pany 10 make large extensions every year, but
will neeessitate the removal Of the pumping sta
tion to place some five miles distant from the
present location, where sufficient area for .mere
settling basins can be obtained
Next to those at Kansas City the Water Works
at Omaha are the most extensive under private
management In the United States. The import
ance OF Omaha as a commercial centre is shown
by the heavy bank exchanges at the Clearing
House, the same being In excess Of those Of CleVe
land, indianapolis, Columbus or Denver, and
nearly equal to Detroit and Minneapolis and
larger than those Of any New England city, ex-
cept Boston and Providence, and greater than the
eomblned'clearings Of the banks at Portland, Me-,
Worcester and Springfield, Massachusetts.
The bonds are now being engraved to meet the
requirements Of the New York Stock Exchange,
and as soon as practicable, application win be
made to admit them to dealings at that exchange
and when placed upon the list they viii not only
have ready market but will doubtless steadily
vdvance In value.
paudfn0 fha dalvarxy ~ au.xro.aa 1.~...t. 80. -.
before September LIST, 1887. certificates in de
nomination Of $1,000 each win be issued by The
Farmers Loan and Trust Company Of New York,
which will have the same force and security as
the bonds, and for smaller amounts the under
signed win give temporary receipts.
We commend these bonds as conservative in
yestment for trust funds. Copies of the mortgage
and other papers may be seen at our respective
offices.